The company said its first quarter production delivered adjusted earnings of A$5.4 million, while the diamond industry was improving and rebalancing, providing a robust pricing environment for both rough and polished diamonds.

 

Production at the 40%-owned Lulo alluvial operation in Angola generated $2.1 million, with the expanded mining fleet processing 47% more material than its previous high, with record revenues expected for the first six months of the year.

 

While wet season forced the company to source gravels from higher lying terraces, total carats recovered was only off 5% at 4655ct, with the higher-value diamond content largely offsetting the much lower grade material.

 

The record volumes mined and processed helped deliver another record: five gems larger than 100 carats produced, plus three large pink stones. 

 

Resources also increased during the first three months of 2021 to a new high of 135,900ct, up 35%.

 

Two sales netted gross revenues of $12.3 million at an average $2314/ct, with an inventory of 3652ct still to be sold. 

 

At the 70%-owned Mothae, just one +100ct diamond was recovered, but at 213ct it was the mine's largest Type IIa white diamond to date.

 

Lucapa recently completed a 45% capacity expansion that allowed Mothae to set a daily record for tonnes and carats produced of 4609t for 320ct.

 

While production was affected by COVID-19 lockdowns, and quarterly production was down 36% overall at 185,497t, resulting in a 23% drop in recoveries to 5264ct, that was largely impacted by a 20% reduction to grade  at 2.8c/hundred tons, however a record $5.1 million in earnings was recognised.

 

Gross sales generated an average price from Mothae of $1537/ct. 

 

 The company continues to pursue ownership of assets from the liquidator of Merlin Diamonds in the Northern Territory, believing they suit its skillset and would be complementary to its vision.

 

Cash and diamond sales receivables at March 31 totalled $12.2 million. 

 

Lucapa's shares, which have traded between 4.2-9c over the past year were up 3% yesterday to 6.6c, valuing the company at $53 million.